| 英文摘要 |
Under the strict land use regulation, the illegal residential use properties face the risk of being fined. And the intensity of law enforcement and the possibility of being legalized will affect their prices. This study examines the price gap between the illegal and legal residential properties by using the illegal residential properties in the commercial and entertainment district, Dawan North Section, Taipei City. The empirical results show that the price of illegal residential use properties is about 25.79% discount of legal residential use properties. When Taipei City Government strength its law enforcement, the price discount of illegal residential properties increases to 30.03%. The empirical results of Difference-in-Difference (DID) method confirm that stricter law enforcements do have profound -5.47% treatment effect on property prices. The price gap between illegal and legal use properties depends on intensity of law enforcement. Since land use regulation and its law enforcement will affect not only the quality of environment, but also the value of property rights, equality among land owners, and government authority. We recommend that the governments have a more long-term and comprehensive land use planning and stricter enforcement to avoid rent seeking behavior. |